Nestlé to invest CHF 83 million in dairy factory in Brazil and to create over 1,000 jobs

A new milk factory producing brands such as Ninho and Molico will be constructed in the state of Rio de Janeiro in Brazil, Nestlé has announced today.

With an investment of BRL 163 million (over CHF 83 million), the 20,000 sq.-metre factory in the city of Três Rios will produce UHT and ready-to-drink (RTD) milk products by the end of the year.

The installation of production lines – for soy-based milk brand Sollys, Nestlé Fast, and RTD beverages under the brands Alpino, Nescau and Neston – aims to produce around 124,000 tonnes of milk products a year.

The investment, announced at a ceremony in the state of Rio de Janeiro, by Ivan Zurita, Chief Executive Officer of Nestlé Brazil, and Sergio Cabral, Brazilian State Governor, will also look to create over 1,000 direct and indirect new jobs.

Mr Zurita said: “We have chosen the State of Rio de Janeiro for our 31st industrial factory in Brazil due to its growing importance for the Nestlé business in the country. In 2011, we celebrate 90 years in Brazil and it is a great joy to celebrate this anniversary with the announcement of a new factory, reinforcing our commitment to the country.”

Sérgio Cabral, Governor of the State of Rio de Janeiro, added: “This is a very special moment for Rio de Janeiro. The inauguration of a new Nestlé plant is an additional step in the process of economic revitalisation of our State. I am sure Nestlé will substantially contribute to the development of our economy.”

Adopting state-of-the-art production technologies and equipment for product packaging and innovative raw material collection, the facility will promote the efficient use of energy and water, illustrating Nestlé’s commitment to environmental sustainability.

The factory – which will supply products to the Brazilian states of Rio de Janeiro, Minas Gerais, Espírito Santo and São Paulo – will furthermore provide an opportunity to improve the milk production in the region, where initial milk supply is around 200,000 litres a day.

With the support of the Brazilian State and the Municipality of Três Rios, Nestlé has started to collect data to develop productivity and quality improvement projects, further supporting milk production sustainability in the area.

The factory will be the third production site in the State of Rio de Janeiro under the Nestlé umbrella. The Jacarepaguá factory produces Nestlé ice cream products, while the Petrópolis plant supplies Nestlé bottled mineral water.

The new Brazilian investment follows the BRL 120 million (over CHF 61 million) expansion of Nestlé’s 63-year-old plant in Araraquara, Brazil, in summer 2009, increasing the production of aseptic brands Ninho and Molico. It also follows the inauguration of Nestlé’s largest ready-to-drink aseptic products factory in Anderson, Indiana, in the United States, in March 2009.